South Africa’s Reserve Bank launches Deposit Insurance Scheme

South Africa’s Reserve Bank launches the country’s first ever Deposit Insurance Scheme comes into effect on April 25, 2024 to protect clients from bank insolvencies.

This scheme will guarantee the funds of clients who hold deposits with a bank in South Africa of up to R100 000 in the unlikely event that their bank becomes insolvent. The Depositor Insurance Fund (DIF) is managed by the Corporation for Deposit Insurance (CODI), the deposit insurance subsidiary of the South African Reserve Bank. CODI's primary responsibility is to establish, maintain and administer the DIF to protect depositors across the banking sector.

Standard Bank prides itself on doing the right business, the right way and we are therefore fully committed to partner with the governing bodies in the financial services industry in South Africa. All banks in South Africa, including Standard Bank, will form part of this initiative to protect bank clients and bring further confidence to the financial sector.

The DIS ensures that there is pre-planned, orderly, and efficient provision of protection to depositors. This financial safety net aims to protect depositors, enhance financial stability, and is underpinned by a combination of strong regulation and supervision.

To ensure our readiness, all relevant client facing employees will be upskilled to ensure they are equipped with the relevant knowledge to keep our clients informed.

You can find more information on CODI here.

CODI official launch media release, find out more here.